<PAGE>
                               Dated 2 July 1997



                             GALEN HOLDINGS LIMITED
                       (TO BE RENAMED GALEN HOLDINGS PLC)

                                     -and-

                              ALAN DAVID ARMSTRONG





                          ---------------------------
                          EXECUTIVE SERVICE AGREEMENT
                          ---------------------------




                              ASHURST MORRIS CRISP
                                Broadwalk House
                                5 Appold Street
                                London EC2A 2HA

                               Tel: 0171-638 1111
                               Fax: 0171-972 7990

                               MAW/MGC/G82900013



<PAGE>
THIS AGREEMENT is made on 2 July 1997

BETWEEN:-

(1)  GALEN HOLDINGS LIMITED (to be renamed Galen Holdings PLC) (No. N17005)
     whose registered office is at Seagoe Industrial Estate, Craigavon, N.
     Ireland BT63 5UA (the "Company"); and

(2)  ALAN DAVID ARMSTRONG of 76 Seskin Road, Straid, Ballyclare, County Antrim
     (the "Executive").

THE PARTIES AGREE AS FOLLOWS:

1.   DEFINITIONS

     In this agreement unless the context otherwise requires:-

1.1  "Board" means the board of directors of the Company;

1.2  "Group Companies" means the Company and all subsidiary and associated
     companies of the Company;

1.3  "associated company" means a company which falls to be so treated as such
     for the purposes of Statement of Standard Accounting Practice No. 1 of the
     Institute of Chartered Accountants in England & Wales;

1.4  "subsidiary" has the meaning given to it in Article 4 of the Companies
     (Northern Ireland) Order 1986;

1.5  "Listing" means the admission of the whole of the share capital, issued and
     to be issued, of the Company to the Official List of the London Stock
     Exchange Limited.

2.   TERM AND APPOINTMENT

2.1  Subject to completion of Listing by 31st August 1997 (the "Condition") the
     Company shall engage the Executive and the Executive shall serve the
     Company as hereinafter provided (the "Appointment"). The Appointment shall
     commence on the date of Listing and shall continue subject as hereinafter
     mentioned unless and until terminated by either party giving to the other
     not less than 12 months' previous notice in but not in any event so as to
     extend beyond the Executive's 60th birthday.

2.2  Where notice is served to terminate the Appointment whether by the Company
     or the Executive, the Company shall be entitled to terminate the
     Appointment forthwith and in full and final satisfaction of the Executive's
     claims under this agreement by paying to the Executive a payment in lieu of
     notice, which shall be calculated with regard to the unexpired period of
     notice.

                                      -1-

<PAGE>
2.3  In the event that the Condition is not satisfied this Agreement shall
     immediately lapse and be of no effect.

3.   DUTIES

3.1  During the Appointment the Executive shall devote such time as is
     necessary to perform the duties assigned to him and shall well and
     faithfully serve the Company and use his best endeavours to promote the
     interests of the Company and shall obey all reasonable and lawful
     directions given to him by or under the authority of the Board and subject
     thereto the Executive shall perform the duties of Chief Operating Officer.

3.2  The Executive may be required in pursuance of his duties hereunder:-

     (a)  to perform services not only for the Company but also for any of the
          Group Companies and without further remuneration (except as otherwise
          agreed) to accept such offices in any of the Group Companies as the
          Company may from time to time reasonably require and if the Executive
          shall cease to be a director for any reason then he may (at the will
          of the Company) continue as an employee only;

     (b)  to work at such places within Northern Ireland as the Company may
          require and with the Executive's consent elsewhere in the United
          Kingdom as the Company may reasonably require, the Company reimbursing
          the Executive in respect of all reasonable relocation expenses;

     (c)  to travel to such places whether in or outside the United Kingdom by
          such means and on such occasions as the Company may from time to time
          reasonably require;

     (d)  to make reports to the Board and/or the Board of its holding company
          on any matters concerning the affairs of the Company or any other
          Group Company as it or they may reasonably require.

3.3  Notwithstanding the foregoing or any other provision of this agreement the
     Company shall not be under any obligation to vest in or assign to the
     Executive any powers or duties and may at any time require the Executive
     to perform:-

     (a)  all his normal duties;

     (b)  a part only of his normal duties and no other duties;

     (c)  such duties as it may reasonably require and no others;

     (d)  no duties whatever;

     and may from time to time suspend or exclude the Executive from the
     performance of his duties and/or from all or any premises of the Company
     for the period of six months in total at any one time without the need to
     give any reason for so doing but his salary will not cease to be payable
     (in whole or in part) nor will he cease to be entitled to any other
     benefits hereunder by reason only of such requirement as mentioned in
     paragraphs 3.3(b) to 3.3(d) of this clause or such suspension or exclusion
     (unless or until his employment under this agreement shall be


                                     - 2 -
<PAGE>
     terminated). During any such suspension or exclusion, if the Company so
     requests the Executive shall be obliged to resign as a director of the
     Company with immediate effect.

4.   HOLIDAY ENTITLEMENT

     During the Appointment the Executive shall be entitled to 25 working days'
     holiday (in addition to public holidays) in each calendar year January to
     December at full salary to be taken at such time or times as may be
     approved by the Board. Holidays not taken cannot be carried over to a
     subsequent year. Upon the determination of the Appointment either the
     Executive shall be entitled to receive payment in lieu of accrued holidays
     not taken at that date (provided that such determination is not pursuant to
     clause 12) or the Company shall be entitled to make a deduction from the
     Executive's remuneration in respect of holidays taken in excess of the
     accrued entitlement. The accrued holiday entitlement at the date of
     determination shall be calculated on the basis of 2 days' holiday for each
     completed calendar month of service in the then current calendar year and
     the amount of the payment in lieu or deduction shall be calculated on the
     basis of 1/260 of the Executive's annual salary for each day's holiday not
     taken or taken in excess of the accrued entitlement.

5.   DISCLOSURE OF INTERESTS

5.1  Except as a representative of the Company or with the previous approval of
     the Board (such approval not to be unreasonably withheld or delayed) the
     Executive shall not during the Appointment whether directly or indirectly
     paid or unpaid be engaged or concerned in the conduct of any other actual
     or prospective business or profession or be or become an employee, agent,
     partner, consultant or director of any other company or firm or assist or
     have any financial interest in any other such business or profession.

5.2  The Executive shall be permitted to hold shares or securities of a company
     any of whose shares or securities are quoted or dealt in on any recognized
     investment exchange provided that:-

     (a)  any such holding shall not exceed three per cent. of the issued share
          capital of the company concerned and is held by way of bona fide
          investment only ("INVESTMENT"); and

     (b)  the Executive complies with the Model Code for Securities Transactions
          by Directors of listed companies issued from time to time by The Stock
          Exchange and any other regulations applicable to the Executive details
          of which are available from the Company Secretary.

5.3  The Executive shall disclose to the Board any matters relating to his
     spouse (or anyone living as such), their children, step children, parents
     or any trust or firm whose affairs or actions he controls which, if they
     applied to the Executive, would contravene clause 5.1, to the extent that
     the Executive has actual knowledge of such matters.

5.4  Subject to clause 3.1 those business activities of the Executive set out in
     the Schedule 7 declaration to the London Stock Exchange, together with the
     supplementary declarations thereto shall not constitute a break of this
     Clause 5 or of Clause 12 hereof.

                                      -3-
<PAGE>
6.   REMUNERATION

6.1  During the Appointment, as remuneration for his services hereunder, the
     Executive shall be paid a fixed salary at the rate of (Pound) 75,000 per
     annum such salary to be subject to annual review by the Remuneration
     Committee of the Board. Such salary shall be inclusive of any fees or
     remuneration which he would otherwise be entitled to receive from the
     Company or any associated company and shall be payable by bank credit
     transfer in equal monthly instalments in arrears on or before the last
     working day of each calendar month.

6.2  In addition to the said salary a bonus shall be paid to the Executive at
     the absolute discretion of the Board (who may suspend or discontinue such
     payments at any time in the interests of the Company whether generally or
     in relation to the Executive) provided that the Board may be free at any
     time to vote to the Executive such additional benefit or remuneration as it
     thinks fit by way of bonus or otherwise without the same being deemed
     thereby for any purpose to become part of the contractual remuneration or
     fixed salary hereunder.

7.   EXPENSES

     The Executive shall be entitled to be repaid all reasonable travelling
     hotel and other expenses properly authorised by the Board and incurred in
     or about the performance of the duties hereunder, which expenses shall be
     evidenced in such manner as the Company may specify from time to time.

8.   COMPANY CAR

     To assist in the performance of the duties hereunder the Company shall
     during the Appointment provide the Executive with a car of a cost and type
     to be determined from time to time by the Board and subject to any terms
     and conditions which the Company may from time to time reasonably impose on
     the Executive in relation thereto (whether permitting limiting excluding or
     imposing a charge upon the private use thereof or requiring a contribution
     to the costs thereof). Subject thereto the Company shall bear the cost of
     insuring testing taxing repairing and maintaining the same and shall
     reimburse to the Executive all reasonable running expenses of the car
     properly incurred in connection with the performance of duties hereunder.
     The Executive shall:-

8.1  take good care of the car and ensure that the provisions and conditions of
     any policy of insurance relating thereto are observed;

8.2  not permit such car to be taken out of the United Kingdom or Republic of
     Ireland without the written consent of the Company; and

8.3  return the car and its keys and all documents relating to it to the
     Company's Registered Office immediately upon the termination of the
     Appointment howsoever arising.


                                      -4-
<PAGE>
9.    BENEFITS

9.1   The Company shall make a contribution of 9 per cent of the Executive's
      salary from time to time directly to the Galen Limited Retirement Benefits
      Scheme for the benefit of the Executive, or such other amount as may from
      time to time be agreed with the Remuneration Committee of the Board.

9.2   The Executive shall be entitled to participate in the Company's permanent
      health insurance and private health insurance schemes, subject to their
      rules from time to time.

9.3   The Company shall pay the rental and call charges for the Executive's home
      telephone.

10.   CONFIDENTIAL INFORMATION

10.1  The Executive shall not use or divulge or communicate to any person other
      than with proper authority any of the trade secrets or other confidential
      information of or relating to the Company or any of the Group Companies
      (including but not limited to details of customers, potential customers,
      consultants, suppliers, potential suppliers, designs, product details,
      future product details, prices, discounting arrangements, specific product
      applications, existing trade arrangements, terms of business and those in
      the course of negotiation, operating systems, pricing and fee structures,
      financial information, inventions, research and development activities,
      scientific formulae and manufacturing techniques and processes) which he
      may have created developed received or obtained while in the service of
      the Company or any of the Group Companies. This restriction shall continue
      to apply after the termination of the Appointment howsoever arising
      without limit in point of time including ideas information or knowledge
      which may come into the public domain for so long as the Executive is in a
      position to use such information more readily than others who have not
      worked for the Company PROVIDED THAT nothing in this clause shall prevent
      the Executive exercising his own skill and knowledge after the termination
      of the Appointment.

10.2  The Executive shall not during the Appointment make otherwise than for the
      benefit of the Company and as may be required for the proper performance
      of his duties pursuant to the Appointment any records (whether recorded on
      paper, computer memory or discs or otherwise) relating to any matter
      within the scope of the business of the Company or any of the Group
      Companies or concerning any of its or their dealings or affairs nor either
      during the Appointment or thereafter use or permit to be used any such
      records otherwise than for the benefit of the Company it being agreed by
      the parties that all such records (and copies thereof) in the possession
      or control of the Executive shall be the property of the Company and shall
      be handed over by the Executive to the Company from time to time and on
      demand and in any event upon the termination of the Appointment.

10.3  The Executive shall not during the Appointment speak in public or write
      any article for publication on any matter connected with or relating to
      the business of the Company or any of the Group Companies without first
      obtaining the approval of the Board such approval not to be unreasonably
      withheld or delayed.


                                      -5-

<PAGE>
11.   INVENTIONS AND CREATIVE WORKS

11.1  The Executive acknowledges that in the course of his employment and as
      part of his duties he may conceive or make, individually or with others,
      certain inventions, ideas, discoveries, developments, writings, designs,
      drawings, improvements and innovations, whether or not patentable, or
      capable of registration (collectively, "INVENTIONS"); and he may develop
      or produce, individually or with others, certain works in which copyright
      and/or unregistered design right will subsist in various media, including
      but not limited to electronic materials (collectively, "CREATIVE WORKS"),
      AND agrees that he will promptly disclose in writing to the Company all
      Inventions and Creative Works.

11.2  "INTELLECTUAL PROPERTY" means patents, trade marks and service marks,
      right in designs, trade or business names, copyrights (including rights in
      computer software)(whether or not any of these is registered and including
      applications for registration of any such thing) and all rights or forms
      of protection of a similar nature or having equivalent or similar effect
      to any of these which may subsist anywhere in the world.

11.3  The Executive acknowledges that any Inventions or Creative Works and any
      and all Intellectual Property subsisting or which may in the future
      subsist in such Inventions or Creative Works whether or not conceived or
      made during working hours, including, without limitation, those which:

      (a) relate in any manner to the business of the Company or any of the
          Group Companies or to its or their actual or demonstrably anticipated
          activities; or

      (b) result from or are made in the course of the Executive's employment by
          the Company; or

      (c) involve the use of any equipment, supplies, facilities, confidential
          information, documents, Intellectual Property or time of the Company
          or any of the Group Companies.

      will on creation vest in and be the exclusive property of the Company in
      the United Kingdom or any other part of the world and where the same does
      not automatically vest as aforesaid the Executive agrees at the Company's
      request and expense to assign the same to the Company (or as it may
      direct) or in the case of any future copyright in the same the Executive
      hereby assigns such copyright to the Company.

11.4  The Executive agrees that, without limitation to the foregoing:

      (a) any Invention disclosed by the Executive to a third person or
          described in a patent or registered design application filed by the
          Executive or on the Executive's behalf; and

      (b) any Creative Work disclosed to a third person, published or the
          subject of an application for copyright or other registration filed by
          the Executive or on the Executive's behalf.

      during or within six months following termination of the Appointment will
      be presumed to have


                                      -6-
<PAGE>
     been written, developed, produced, conceived or made by the Executive
     during the Appointment, unless proved by the Executive to have been
     written, developed, produced, conceived or made by the Executive following
     the termination of the Appointment.

11.5 The Executive hereby irrevocably waives any rights which he may have in the
     Inventions or the Creative Works which are or have been conferred on him by
     chapter IV of part I of the Copyright, Designs and Patterns Act 1988 headed
     "Moral Rights" and by any other laws of a similar or equivalent nature in
     any of the countries of the world.

11.6 The Executive will also, at the Company's request and expense, execute
     specific assignments of any Invention or Creative Work and execute,
     acknowledge and deliver such other documents and take such further action
     as the Company may require, at any time during a subsequent to the period
     of the Appointment, to vest or evidence title in Inventions or Creative
     Works in the Company (or as it may direct) and subject to the Executive
     being indemnified against all reasonable costs and expenses to use his best
     endeavours to obtain, maintain and defend the Intellectual Property in the
     Inventions or Creative Works in any and all countries or to otherwise give
     effect to the provisions of this agreement.

11.7 The Executive HEREBY IRREVOCABLY APPOINTS the Company to be his attorney in
     his name and on his behalf to execute and do any such instrument or thing
     and generally to use his name for the purpose of giving to the Company or
     its nominee the full benefit of the provisions of this clause 11 and
     acknowledges in favour of any third party that a certificate in writing
     signed by any Director or the Secretary of the Company that any instrument
     or act falls within the authority hereby conferred shall be conclusive
     evidence that such is the case.

11.8 The Executive shall not knowingly do or permit to be done any act or
     knowingly omit to do any thing which the Executive is aware (or ought
     reasonably to be aware) might imperil, jeopardise or prejudice any of the
     rights referred to in this clause 11 or which might invalidate or
     prejudice any application made by the Company for a patent, registered
     design, copyright, design right or other similar right in any part of the
     world.

12.  RESTRICTIONS AFTER TERMINATION

12.1 The Executive covenants to the Company (for itself and as trustee for each
     of the Group Companies) that he shall not for the following periods after
     the termination of the Appointment howsoever arising (but excluding
     repudiatory breach of this agreement by the Company) save with the prior
     written consent of the Board which shall not be unreasonably refused or
     delayed directly or indirectly, either alone or jointly with or on behalf
     of any person, firm, company or entity and whether on his own account or as
     principal partner shareholder director employee consultant or in any other
     capacity whatsoever:-

     (a) for six months following termination in the Relevant Territory and in
         competition with the Company or any of the Relevant Group Companies
         engage, assist or be interested in any undertaking which provides
         services/products similar to those provided by the Company or any of
         the Relevant Group Companies in the 12 months prior to termination and
         with which the Executive was concerned in the said period of 12 months;


                                     - 7 -
<PAGE>
      (b) for three months following termination in the Relevant Territory
          solicit or interfere with or endeavour to entice away from the Company
          or any of the Relevant Group Companies any person, firm, company or
          entity who was a customer of the Company or any of the Relevant Group
          Companies in the 12 months prior to termination and with whom the
          Executive was concerned or had personal contact in the said period of
          12 months;

      (c) for six months following termination in the Relevant Territory be
          concerned with the supply of services/products to any person, firm,
          company or entity which was a customer of the Company or any of the
          Relevant Group Companies in the 12 months prior to termination where
          such services/products are in competition with those services/products
          supplied by the Company or any of the Relevant Group Companies in the
          said 12 month period, with which supply the Executive was concerned in
          the said period of 12 months;

      (d) for six months following termination offer to employ or engage or
          solicit the employment or engagement of any person who immediately
          prior to the date of termination was a member of the senior management
          team of the Company or any of the Relevant Group Companies and with
          whom the Executive worked in the 12 months prior to termination
          (whether or not such person would commit any breach of their contract
          of employment or engagement by reason of leaving the service of such
          company); and

      (e) represent himself as being in any way connected with or interested in
          the business of the Company or any of the Relevant Group Companies
          other than in his capacity as a shareholder of any such company.

12.2  Each of the obligations contained in this clause constitutes an entire
      separate and independent restriction on the Executive, despite the fact
      that they may be contained in the same phrase and if any part is found to
      be unenforceable the remainder will to the extent legally permissible
      remain valid and enforceable.

12.3  While the restrictions are considered by the parties to be fair and
      reasonable in the circumstances, it is agreed that if any such
      restrictions should be judged to be void or ineffective for any reason but
      would be treated as valid and effective if part of the wording thereof
      were deleted or the periods thereof reduced or the area thereof reduced in
      scope, the said restrictions shall apply with such modifications as will
      be necessary to make them valid and effective.

12.4  The Executive agrees that he will at the request and cost of the Company
      enter into a direct agreement with any of the Group Companies under which
      he will accept restrictions corresponding to the restrictions contained in
      this clause (or such as will be appropriate in the circumstances) in
      relation to such Group Company PROVIDED THAT any such direct agreement
      will not impose any greater or more onerous restrictions on the Executive
      than those contained in this agreement.

12.5  The provisions of this clause will not prevent the Executive from holding
      an Investment.


                                     - 8 -
<PAGE>
12.6      For the purposes of this clause:-

          (a)  a "Relevant Group Company" means any of the Group Companies for
               which the Executive has performed services or in which he has
               held office during the 12 months immediately preceding
               termination and, if applicable, their predecessors in business
               during such 12 month period; and

          (b)  "Relevant Territory" means the area constituting the market of
               the Company or any of the Relevant Group Companies for products
               and services with which the Executive shall have been concerned
               in the period of 12 months prior to termination.

13.       TERMINATION BY EVENTS OF DEFAULT

          The employment of the Executive may be terminated at any time by the
          Company by notice but with immediate effect and without liability for
          compensation or damages:-

          (a)  if the Executive is guilty of any gross default of his
               obligations hereunder or grave misconduct in connection with or
               affecting the business of any Group Company; or

          (b)  in the event of any repeated breach or non-observance by the
               Executive (after a warning in writing) of any of the stipulations
               contained in this agreement; or

          (c)  if the Executive has an interim receiving order made against him,
               becomes bankrupt or makes any composition or enters into any deed
               of arrangements with his creditors; or

          (d)  if the Executive is convicted of any criminal offence punishable
               by imprisonment (other than an offence under road traffic
               legislation in the United Kingdom or elsewhere for which a fine
               or non-custodial penalty is imposed); or

          (e)  if the Executive shall have committed any act of dishonesty or
               gross misconduct or any conduct tending in the reasonable opinion
               of the Board to bring the Company or any Group Company into
               disrepute; or

          (f)  if the Executive becomes prohibited by law from holding the
               office of director in any company; or

          (g)  if the Executive resigns as a director of the Company or any
               Group Company otherwise than at the request of the Company.

14.       INCAPACITY

          If the Executive shall be incapacitated during the Appointment by
          ill-health or accident from performing his duties hereunder for an
          aggregate of 180 days or more in any period of 12 months the Company
          may by written notice to the Executive forthwith (or as from a future
          date specified in the notice) discontinue payment in whole or part of
          the remuneration under clause 6 hereof until such incapacity shall
          cease or (whether or not his remuneration shall have been discontinued
          as aforesaid) determine the Appointment. Subject as aforesaid the said


                                      -9-

<PAGE>
       remuneration shall continue to be payable to the Executive under clause 6
       notwithstanding such incapacity but the Company shall be entitled to set
       off or deduct therefrom the amount of any sickness or other benefit to
       which the Executive is entitled under Social Security legislation for the
       time being in force.

15.    OBLIGATIONS UPON TERMINATION

       Under the termination of the Appointment howsoever arising the Executive
       shall:-

15.1   at any time or from time to time thereafter upon the request of the
       Company, resign without claim for compensation (save for any claim in
       respect of a breach of the terms of this Agreement) from:-

       (a)  all offices held in the Company or any of the Group Companies; and

       (b)  membership of any organisation and any office in any other company
            acquired by reason of or in connection with the Appointment;

       and should he fail to do so the Company is hereby irrevocably appointed
       to be the Executive's Attorney in his name and on his behalf to execute
       any document and to do any things necessary or requisite to give effect
       to this clause;

15.2   deliver to the Board all documents (including, but not limited to,
       correspondence, lists of customers, notes, memoranda, plans, drawings and
       other documents of whatsoever nature and all copies thereof) made or
       compiled or acquired by the Executive during the Appointment and
       concerning the business, finances or affairs of the Company or any of the
       Group Companies or customers.

16.    RECONSTRUCTION AND AMALGAMATION

       If at any time the Executive's employment is terminated in connection
       with any reconstruction or amalgamation of the Company or any of the
       Group Companies whether by winding up or otherwise and the Executive
       receives an offer on terms which are similar in all material respects to
       the terms of this agreement from a company involved in or resulting from
       such reconstruction or amalgamation the Executive shall have no claim
       whatsoever against the Company or any such company arising out of or
       connected with such termination.

17.    NOTICES

       Any notice to be given hereunder shall be in writing. Notices may be
       given by either party by personal delivery or post or by fax addressed to
       the other party at (in the case of the Company) its registered office for
       the time being and (in the case of the Executive) his last known address
       any such notice given by letter or fax shall be deemed to have been
       served at the time at which the letter was delivered personally or
       transmitted or if sent by post would be delivered in the ordinary course
       of post.




                                      -10-
<PAGE>
18.  PREVIOUS CONTRACTS

     This agreement is in substitution for any previous contract of service
     between the Company or any of the Group Companies and the Executive which
     shall be deemed to have been terminated by mutual consent as from the
     commencement of the Appointment.

19.  PROPER LAW

     This agreement shall be governed and construed in all respects in
     accordance with the laws of Northern Ireland and the parties submit to the
     non-exclusive jurisdiction of the Courts of Northern Ireland in determining
     matters arising under it.

20.  CONSTRUCTION

20.1 The headings in this agreement are inserted for convenience only and shall
     not affect its construction.

20.2 Any reference to a statutory provision shall be construed as a reference to
     any statutory modification or re-enactment thereof (whether before or after
     the date hereof) for the time being in force.

21.  STATUTORY INFORMATION AND SCHEDULE 1

     Schedule 1 hereto (in addition to this agreement) constitutes a written
     statement as at the date hereof of the terms of employment of the Executive
     in compliance with the provisions of the Employment Rights (Northern
     Ireland) Order 1996; it does not form part of the contract of employment
     and may be varied by the Company by notice in writing to the Executive of
     any changes applicable to his employment.

IN WITNESS whereof this agreement has been executed as a deed on the date first
before written.

Signed as a deed by the said                 )
ALAN DAVID ARMSTRONG                         )
in the presence of:-                         ) /s/ Alan D. Armstrong
                                               -----------------------------

          /s/ illegible signature
          -----------------------------


Signed by                                    )
duly authorised for and on behalf of         )
GALEN HOLDINGS LIMITED                       ) /s/ Allan J. McClay
in the presence of:-                         )-------------------------------
                                               Director

          /s/ illegible signature
          -----------------------------


                                      -11-
<PAGE>
                                   SCHEDULE 1

1.     The Executive has been continuously in the employment of the Company
       (including reckonable service with any of the Group Companies) since
       1978.

2.     Rate of remuneration and the intervals at which it is paid are contained
       in clause 6.

3.     There are no specific terms and conditions relating to hours of work
       except as provided in clause 3.1.

4.     The terms and conditions relating to holidays are contained in clause 4
       and those relating to sickness are contained in clause 14.

5.     Particulars as to the length of notice to terminate are contained in
       clause 2.

6.     Particulars as to the work for which the Executive is employed are
       contained in clause 3.

7.     Subject to clause 3.2 the Executive's place of work at the date of this
       Schedule is Craigavon.

8.     There are no disciplinary rules applicable to the Executive except as
       provided in this agreement and if the Executive is dissatisfied with any
       disciplinary decision he should apply orally or in writing to the Board.

9.     Any application for the purpose of seeking redress of any grievance
       relating to the Executive's employment should be made either orally or
       in writing to the Board.

10.    A contracting-out certificate is not in force in respect of the
       Executive's employment.

11.    Details of the Executive's work outside the UK are contained in clause
       3.2.








                                      -12-